• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Which type of ownership should my business have?

Extracts from this document...


Which type of ownership should my business have? My idea for a business is a small-sized (perhaps medium-sized) company, which produces laptops- simply. However, our laptops are unique. They are around 8 inches wide, making them one of the smallest true laptops on the market. There are smaller so-called "laptops" but these are more like glorified PDAs (e.g. Sony Vaio VGN-U50). Our laptops are designed for travelling businessmen and school pupils, secondary school pupils in particular. Being so small, the laptop can easily fit into a school bag or briefcase, even in a handbag if needed. The main USP is its size. It is also supposed to be easily affordable, mainly for the school pupils' sake. Finally the diminutive laptop should be powerful. Many people now do lots of things on the computer, having lots of RAM-intensive programs running at the same time, and school pupils will not just use the laptop for their work, it also serves as a recreational facility- for use with games and multimedia. ...read more.


There are several advantages of the partnership type of ownership; the first one being that we can have a small number of partners/owners, in our case, 3. With 3 people (or more than 1 person) owning the person, more capital can be invested, so we can get manufacturers to produce high quality goods, instead of laptops that break easily or crash at the slightest tap. Each partner also has an evident specialist skill, for example, Osama may be good at keeping accounts and Craig may be good at persuading prospective suppliers/manufacturers, and I may be good at making things run on schedule, and actually selling the products. We could all be good website designers. We can share the work of the business between us, and if someone is ill, the routine and work will not suffer too badly. Partnerships are quite easy to set up as well, there are no complicated and pricy legal processes required to set up this type of business organisation. ...read more.


Reasons why I chose partnership type over the other ownership types: Sole owner * There are 3 owners, therefore this would not be possible * Shortage of skills and capital Private limited Company * Financial information is not private, so competitors could access the information and steal unique ideas * We need to sell shares to use as capital, but they cannot be sold to the general public- it can be difficult to find buyers. * Shareholders will expect a cut of the profits as dividends, but this can drain the company's assets * Incorporation is a long and expensive process * More complex organisational structure, whilst we are a small business Public Limited Company * Their shares can be sold to the public :)(adv.) * To become a PLC, a company must have issued at least �50,000 worth of shares * Dividends- can drain company's assets * Possible takeover bids- Other companies can buy large quantities of shares in our business, and ask other shareholders to sell their shares. When this other company gains enough shares, the ownership will change. ?? ?? ?? ?? JA ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our GCSE Business, Companies and Organisation, Activity section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related GCSE Business, Companies and Organisation, Activity essays

  1. The type of ownership Cadbury Schweppes PLC.

    liability to the amount invested, and whilst profits are shared equally the responsibility and control of the business lies with the members of the family. The things that the Cadburys family should help towards the company were: * The family abilities to drive the business forward.

  2. Type of Business Ownership, sectors, types of bysiness and size of business

    A partnership has a lack of continuity, if one partner leaves the business must shut down. Advantages: * Decision making and responsibilities are shared * Discussion can take place * More capital and it may b easier to raise capital.

  1. In this section I will explain every one the different types of business ownership. ...

    the general public will first if all would not give money to the zoo (donations) because the public would think that a plc like Chester Zoo would make millions and wouldn't help any charities so why should they help. But if Chester Zoo was a Charity limited by Guarantee which

  2. Starting a Small Business

    It will help my reputation boost up because more customers will visit my business and feel safe in the environment. The same goes for this as well if I don't comply with these regulations my business will not be a reliable place for customers to visit because they may complain

  1. Free essay

    Write a business plan which I would set up within my school.

    What times would you prefer our stationary shop to be open? 9. Which class room do you think would be most suitable for our stationary shop to be? 8 10. What is the highest price you would pay for the stationary seen below: Pencils 20 colouring pencils Erasers Glue

  2. Business Plan. After putting a lot of thought into what kind of business we ...

    Location The business needs to be in the right location where it will attract maximum customers and tourists. Therefore, we need to have a look round to see what places are available and good for the business. We need to look out for an acceptably sized lot, one that has

  1. Types of business ownership, starting a business, multinationals.

    No partnership in the world is a very large business because of capital. Other type of business is necessary to expand more. Limited Liability Companies * Joint Stock Companies * Two types: i. Private Limited Companies (Ltd) - Malta - more common than plc's Examples: Fino & Sons Ltd, Agius & Agius Ltd ii.

  2. Business Studies- Unit 1- Business Ownership

    that a new partnership must be created after that one partners? death. Why would a partnership change ownership to a limited company? There are many advantageous reasons as to why a partnership would change ownership to a limited company. Firstly, they would be able to raise extra capital through selling parts of their company.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work